4 Star Rated Flexi Cap Mutual Fund SIP, Ticked Upto 73% Returns: Check Portfolio

Investments in mutual funds and SIPs are gaining importance and much popularity in the Indian equity markets gradually. During the pandemic, when the Indian economy slowed down sharply, the stock market has seen a boom. New and domestic investors in the mutual funds and SIP fields have helped this to gain.

Flexi Cap Fund SIP investment rationale

A Flexi Cap mutual fund, the fund house will have the liberty to invest in open-ended and dynamic equities. These stocks can be large caps, mid-caps, or small caps. That means the market capitalization of the selected stocks will be flexible. The large-cap and mid-cap funds are considered to be more secured, while the small-cap funds are considered to be more profitable in the short term. So, the Flexi cap funds can offer you both security and good returns.

In addition to that, one must check the fund's AUM, and the expense ratio, to understand the profitability and risk factors.

HSBC Flexi Cap Fund - Direct Plan-Growth

HSBC Flexi Cap Fund - Direct Plan is a mutual fund SIP investment that has a NAV of Rs. 132.54. However, the fund size (AUM) of this fund is Rs. 404.97 crore, which is not much high compared to other peer funds. The Expense Ratio (ER) of this fund is 1.38%, while the category average, is 0.94%. The Expense Ratio is measured as the percentage, which the fund house will utilize from the retail investors' money, for fund management purposes. A higher ER, can impact your profitability.

This mutual fund SIP has been best rated with 4 Star by rating agency Crisil.

Absolute and annualized returns

As it is a Flexi cap fund, its absolute returns from SIPs have been reported best in the long term. In the last 1-year SIP return stood at 0.50%, in the last 2 years it has fetched 26.06% returns, in the last 3 years it has given 34.11% returns, in the last 5 years, it has fetched 41.26% returns. Annualized returns from HSBC Flexi Cap Fund - Direct Plan's SIP were 20.04% in the past 3 years, and 13.79% in the past 5 years.

HSBC Flexi Cap Fund - Direct Plan's absolute mutual fund returns are highest in 5 years terms. In the last 1 year return stood at 12.11%, in the last 2 years it has fetched 48.82% returns, in the last 3 years it has given 55.56% returns, in the last 5 years it has given 73.55% returns. In the past 2 years, the HSBC Flexi Cap Fund - Direct Plan's annualized returns stood at 21.99%, however, the category average is marginally higher at 22.48%.

Portfolio

HSBC Flexi Cap Fund - Direct Plan's total equity holding is 98.00%, and the rest of the 2.00% is invested in other sectors. Among total of 50 stocks, the Fund's Large Cap Investments are 54.05%, Mid Cap Investments are 10.55%, Small Cap Investments is 14.78%, and 18.62% investments are allocated in other funds.

This fund's portfolio turnover ratio is 52.00%. The top 10 equity holdings of the fund are ICICI Bank Ltd., HDFC Bank, Infosys Ltd., Larsen & Toubro Ltd., State Bank Of India, Axis Bank Ltd., Bajaj Finance Ltd., Tata Motors Ltd., Reliance Industries Ltd., and Tech Mahindra Ltd.

Other funds under this category are, PGIM India Flexi Cap Fund - Direct Plan, IDBI Flexi Cap Fund - Direct Plan, Canara Robeco Flexi Cap Fund - Direct Plan, etc.

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Disclaimer

Investing in equities/mutual funds/SIPs/debts poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article. (Data mentioned as on March 4, 2022)